STATE  OF  NEW-YORK. 


No.  2. 


IN  SENATE, 

January  6,  1836. 


MESSAGE 

From  the  Governor,  relative  to  the  relief  to  be  given 
to  the  city  of  New- York. 

TO  THE  SENATE  AND  ASSEMBLY. 
Gentlemen; 

The  situation  of  that  portion  of  our  constituents  who 
have  been  directly  affected  by  the  recent  destructive  fire  in  the 
city  of  New-York,  requires  your  immediate  attention.  Unless 
your  aid  is  promptly  interposed,  the  consequences  of  this  disaster 
will  soon  become  more  severe  and  extensive.  The  citizens  of  New- 
York  appointed  a  committee  to  confer  with  me  in  relation  to  the 
relief  to  be  afforded  by  the  State  in  this  great  emergency.  Their 
views  on  this  subject  are  presented  in  a  communication  addressed 
to  me,  which  I  herewith  transmit  to  you,  with  a  request  that  it 
should  receive  your  early  attention.  Several  projects  for  relief 
accompanied  the  communication  of  the  committee,  and  I  have 
deemed  it  proper  to  transmit  them  also  along  with  it,  that  you  may 
be  apprised  of  the  various  modes  of  giving  relief  which  have  been 
suggested. 

It  is  of  the  first  importance  that  the  claims  on  the  insurance  com- 
panies for  losses  should  be  speedily  adjusted.  Many  of  the  mer- 
chants who  have  these  claims,  depend  principally  upon  the  pay- 
ment of  them  for  the  means  of  again  commencing  business,  and 
they  are  exceedingly  anxious  to  have  them  settled  as  soon  as  prac- 
ticable. The  memorial  from  the  common  council  and  citizens  of 
New-York  on  this  subject,  will  require  your  immediate  considera- 

[Senate  No.  2.]  A 


[Senate- 


tion.  It  appears  by  the  accompanying  statement  of  the  committee, 
that  about  one  half  of  the  insurance  companies  have  become  in- 
solvent in  consequence  of  their  heavy  losses,  and  that  most  of  those 
that  are  not  so,  are,  from  the  same  cause,  very  much  embarrassed. 

A  very  large  amount  of  property  in  New-York  usually  kept  un- 
der insurance,  is  now  in  effect  without  it,  in  consequence  of  the 
failure  and  embarrassment  of  these  institutions,  and  the  owners  at 
this  time  feel  a  peculiar  uneasiness  on  this  account.  It  is  proper 
that  you  should  give  them  the  means  of  effecting  safe  insurances 
without  obliging  them  to  go  abroad  for- that  purpose.  Your  atten- 
tion ought  therefore  to  be  particularly  directed  to  this  object. 
Where  it  is  practicable  to  re-organize  the  old  companies,  it  seems 
to  me  to  be  advisable  to  do  so;  and  if  new  companies  should  be  re- 
quired, I  see  no  objections  to  granting  charters  for  them:  but  in 
resuscitating  the  old,  and  in  creating  new  companies,  you  ought  to 
confer  only  the  rights  and  powers  appropriate  to  the  business  of 
insurance,  and  carefully  restrain  them  from  using  any  other. 

The  corporation  of  the  city  of  New-York,  it  is  understood,  will 
apply  to  you  for  authority  to  raise  six  millions  of  dollars,  to  be 
used  principally  in  purchasing,  or  advancing  money  on,  the  bonds 
which  have  been  taken  by  the  insurance  companies  on  the  invest- 
ment of  their  capitals.  I  cannot  anticipate  any  objection  to  this 
measure,  and  I  hope  there  will  be  no  delay  in  acting  on  it. 

The  immense  destruction  of  property  by  the  fire  may  render 
further  measures  of  relief  necessary.  There  appears  to  be  a  con- 
siderable diversity  of  opinion  as  to  what  should  be  the  nature  and 
character  of  them.  Such  measures  should  have  reference  to  the 
peculiar  circumstances  of  the  case.  The  embarrassment  caused 
by  the  disaster  will  only  be  temporary,  and  the  measures  of  relief 
should  therefore  be  of  a  similar  character.  In  addition  to  the  mea- 
sures already  mentioned,  it  is  generally  suggested  that  an  increase 
of  capital,  or  of  bank  accommodations,  will  be  necessary  to  ena- 
ble the  commercial  community  to  sustain,  in  a  proper  manner,  the 
pressure  caused  by  their  heavy  losses. 

The  banks  in  the  city  of  New-York  have  now  about  one  million 
of  the  surplus  moneys  belonging  to  the  Canal  fund.  The  Commis- 
sioners of  that  fund  are  authorized  to  borrow  eight  hundred  and 
sixty  thousand  dollars  for  the  completion  of  the  Chenango  canal. 
No  considerable  part  of  this  sum  will  be  wanted  until  after  some 


No.  2.]  3 

part  of  the  tolls  of  next  year  shall  have  been  received.  If  the 
Commissioners  should  immediately  issue  the  stock  for  this  loan, 
they  would  be  enabled,  by  this  means  and  by  using  some  other 
stock  under  their  control,  to  place  in  the  banks  of  New-York,  in- 
cluding the  sum  now  loaned  to  them,  two  millions  of  dollars,  with- 
out producing  any  inconvenience  to  the  pecuniary  affairs  of  the 
other  parts  of  the  State.  The  accruing  tolls  of  the  Erie  and  Cham- 
plain  canals  can  be  applied  to  finish  the  Chenango  canal,  and  the 
portion  of  the  two  millions  belonging  to  this  canal,  can,  at  the  same 
•time  be  transferred  to  the  Erie  and  Champlain  Canal  fund,  and 
thus  the  whole  two  millions  become  a  part  of  the  surplus  revenue 
of  that  fund.  The  debt  for  the  payment  of  which  this  surplus  is 
pledged,  will  not  be  due  till  1837  and  1845.  The  whole  of  the 
two  millions  can  therefore  be  loaned  to  the  banks  in  the  city  of 
New-York  until  July,  1837,  and  if  necessary,  the  principal  part  of 
it  continued  until  July,  1845.  To  give  greater  efficiency  to  this 
sum  in  affording  relief,  it  might  be  distributed  among  the  Safety 
Fund  banks  in  that  city,  with  authority  to  each  of  them  to  regard 
the  portion  it  may  receive  as  so  much  increase  of  capital,  and  to 
discount  on  it  as  such  for  the  time  they  may  retain  the  loan,  or  for 
such  a  period  as  you  may  think  proper  lo  designate.  This  arrange- 
ment would  give  these  banks  the  privilege  to  extend  their  accom- 
modations five  millions  beyond  the  amount  they  are  now  authoriz- 
ed to  discount.  Although  these  banks  might  not  be  able  to  avail 
themselves  of  this  privilege  to  the  full  extent,  they  could  undoubt- 
edly increase  their  accommodations  three  or  four  millions. 

If  this  and  the  other  measures  should  not  be  adequate  to  the  exi- 
gencies of  the  crisis,  the  abilities  of  these  banks  might  be  still  fur- 
ther enlarged  under  proper  limitations,  as  to  amount  and  time,  in 
ease  they  should  become  the  borrowers  for  any  specified  time  less 
than  a  year,  of  any  portion  of  the  moneys  which  the  city  may 
raise  under  the  authority  proposed  to  be  given  to  it,  or  if  they 
should  procure  funds  for  a  similar  period  from  any  foreign  source. 

In  these  or  any  other  measures  suitable  to  the  case,  and  calcu- 
lated to  give  speedy  and  effectual  relief  to  our  fellow-citizens  of 
New-York,  I  shall  give  you  my  cordial  co-operation. 

W.  L.  MARCY. 

Albany,  6th  January,  1836. 


f 


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t)ocuments  accompanying  the  Message* 


COMMUNICATION  FROM  THE  NEW-YORK  COMMITTEE. 

Albany ,  January  2;  183G. 

His  Excellency  Gov.  Marcv. 
SIR, 

The  committee  appointed  by  the  citizens  of  New-York,  to  con- 
fer with  your  Excellency  in  relation  to  the  calamity  which  has 
befallen  their  city  in  the  destructive  conflagration  of  the  16th  and 
17th  ultimo,  beg  leave  to  repeat  in  this  form,  the  substance  of  the 
remarks  and  statements  which  have  been  verbally  made  to  your 
Excellency  on  this  interesting  subject. 

The  deep  sympathy  which  has  been  expressed  in  the  principal 
cities  of  the  Union  on  this  afflicting  event,  which,  falling  imme- 
diately on  our  city,  will  be  felt  in  every  part  of  the  State  of 
New-York;  the  generous  interest  in  our  welfare,  and  desire  to 
afford  the  most  effectual  relief,  evinced  in  the  recent  proceedings 
of  our  sister  cities  of  Albany  and  Utica;  and  the  solicitude  mani- 
fested by  yourself,  and  the  other  members  of  the  State  government, 
to  co-operate  in  any  measures  of  assistance  and  relief  which  may 
be  adopted  by  the  Legislature,  encourage  us  to  hope  that  the  dis- 
tress and  difficulty  arising  from  this  disaster,  unprecedented  in  ex- 
tent, and  appalling  as  it  may  have  appeared  at  first,  will  be  speedi- 
ly removed:  and  the  remembrance  of  our  present  misfortune  serve 
only  as  a  cause  of  exultation  for  the  fortitude  evinced  by  our  own 
citizens  under  its  pressure,  and  their  energy  in  recovering  from  its 
effects,  and  of  gratitude  for  the  liberal  aid  which  will  have  been 
extended  to  us  in  all  quarters  in  the  hour  of  adversity. 

The  resources,  of  the  city  of  New-York,  and  the  enterprise  and 
perseverance  of  its  inhabitants,  are  a  sure  guarantee  that  she  will 
soon  recover  from  the  effects  of  this  calamity,  and  the  present 
scene  of  devastation  be  restored  to  its  wonted  activity  and  splendor; 
but  it  may  be  readily  imagined  that  the  doubt  and  uncertainty 
arising  from  the  conflicting  interests  of  individuals  and  associations, 
may  require  the  interference  of  the  Legislature  to  expedite  legal 
proceedings,  and  avoid  expense;  and  the  difficulty  of  rendering 
available  our  resources,  justify  us  in  appealing  to  their  liberality 
to  afford  temporary  relief  to  the  sufferers. 

To  accomplish  these  objects,  and  to  carry  out  the  beneficent  in* 


f Sknatk 


tchtions  of  our  fellow-citizens  throughout  the  State,  the  committee 
would  respectfully  suggest  the  adoption  of  the  following  measures: 

1.  The  passage  of  a  law  to  enable  the  fire  insurance  companies 
who  have  become  insolvent  by  the  late  fire,  to  settle  with  the 
claimants  for  losses  in  a  more  summary  and  less  expensive  manner 
than  is  now  prescribed  by  law. 

For  this  object,  the  draft  of  a  law  recommended  by  a  sub-com- 
mittee of  the  general  committee  of  citizens,  is  herewith  submitted, 
which  has  been  prepared  under  the  direction  of  gentlemen  of  emi- 
nent legal  reputation.  In  addition  to  this  law,  we  would  suggest 
a  provision  to  compel  the  insured  on  unexpired  policies  issued  by 
the  insolvent  companies,  to  surrender  the  same,  and  to  receive  back 
the  amount  of  their  unearned  premium. 

The  number  of  fire  insurance  companies  in  the  city  of  New- 
York  and  Brooklyn  is  twenty-eight,  with  an  aggregate  capital  of 
about  nine  and  an  half  millions.  Of  this  number,  fourteen,  whoso 
capital  stocks  jointly  amount  to  upwards  of  five  millions,  have  be- 
come insolvent  by  the  fire,  and  it  is  apprehended  will  not  be  able 
to  pay  more  than  from  fifty  to  sixty  per  cent  of  their  losses.  The 
remaining  fourteen  have  all  suffered  in  a  greater  or  lesser  propor- 
tion, but  it  is  hoped  they  will  be  able  to  satisfy  all  claims  for  losses, 
and  several  of  the  number  continue  their  business  with  reduced 
capitals. 

The  passage  of  this  law,  in  the  opinion  of  the  committee,  should 
be  one  of  the  first  measures  adopted  by  the  Legislature,  to  enable 
the  insolvent  offices  to  proceed  promptly  in  the  settlement  of  losses 
according  to  their  ability  to  pay;  to  secure  to  each  of  the  claimants 
his  fair  rateable  proportion  of  the  assets  of  the  assurers,  and  no 
more;  and  to  remove,  as  speedily  as  possible,  all  obstructions  in 
the  way  of  a  resuscitation  of  such  of  the  companies  as  may  be  dis- 
posed to  call  in  new  capitals,  and  recommence  business. 

2.  The  immediate  passage  of  the  law  about  to  be  applied  for  by 
the  corporation  of  New-York,  to  enable  them  to  effect  a  loan,  and 
create  a  city  stock  for  six  millions  of  dollars,  to  be  appropriated  to 
the  assumption  of  the  bonds  and  mortgages  in  which  the  capital 
stock  of  the  insurance  companies  is  principally  invested;  thereby 
relieving  to  that  extent  the  mortgagors,  who  are  spread  over  the 
whole  of  the  city,  and  embrace  in  their  number  a  large  proportion 
of  that  class  of  our  citizens,  whose  avocations  preclude  them  from 
advantageously  raising  funds  on  a  sudden  emergency,  while  it  fur- 
nishes the  means  of  rendering  available  the  property  of  the  com- 
panies to  the  payment  of  their  debts. 

3.  As  there  is  little  reason  to  hope  that  the  amount  of  property 
in  buildings  and  merchanize  lost  by  the  fire  will  fall  much  short  of 
twenty  millions  of  dollars,  the  amount  of  funds  to  be  raised  by  the 
corporation  loan,  together  with  the  sum  of  two  millions  agreed  to 
be  advanced  by  the  Bank  of  the  United  States,  will,  it  is  appre- 
hended, be  inadequate  to  afford  sufficient  relief;  and  it  is  therefore 
respectfully  suggested  that  the  Legislature  should  extend  further 
aid,  by  passing  a  supplemental  bill,  authorising  the  corporation 
of  the  city  to  increase  their  loan  to  ten  millions  of  dollars  in  the 


No.  2.] 


whole,  if  necessary,  and  to  appropriate  any  portion  of  the  surplus 
that  may  remain  after  providing  for  the  bonds  and  mortgages  held 
by  the  insurance  companies,  in  affording  facilities  to  the  community 
through  the  medium  of  the  banks  of  the  city,  and  adding  to  the 
security  thereby  created  a  pledge  of  the  faith  of  the  State  for  the 
eventual  redemption  of  such  stock. 

4.  Every  facility  should  be  granted  for  the  reorganization  of  the 
insurance  companies,  by  the  passage  of  a  law  authorizing  the  pre- 
sent companies,  after  they  shall  have  liquidated,  by  compromise  or 
otherwise,  all  claims  for  losses,  and  cancelled  their  outstanding 
policies,  to  proceed  in  the  creation  of  a  new  capital,  and  to  re- 
commence business  under  their  old  charters,  or  to  grant  new  char- 
ters at  the  option  of  the  applicants,  dispensing  with  the  lcgafnotice 
required  in  applying  for  new  acts  of  incorporation,  or  for  the  al- 
teration of  existing  ones,  extending  in  some  cases  the  term  of  their 
incorporation,  and  generally  by  granting  such  advantages  and  pri- 
vileges, not  inconsistent  with  the  public  good,  as  may  enable  them 
to  fill  their  capital  stock,  and  proceed  without  delay  in  effecting 
new  insurances  upon  the  immense  amount  of  property  which  is 
now  virtually  uninsured,  or  about  to  be  insured  in  other  places  at 
greatly  enhanced  premiums. 

No  class  of  our  citizens  has  suffered  so  severely,  and  none  are 
so  worthy  of  commiseration,  as  the  stockholders  in  the  insolvent 
companies.  The  former  prosperous  condition  of  those  companies, 
the  high  character  of  the  individuals  concerned  in  their  manage- 
ment, and  the  regularity  and  apparent  certainty  of  the  dividends, 
conspired  to  render  this  species  of  stock  a  favorite  investment  for 
the  property  of  widows,  orphans,  minors,  persons  retired  from  bu- 
siness, benevolent  and  charitable  institutions,  and  for  small  estates 
in  trust.  Hence  we  are  called  to  sympathize  with  hundreds  who 
have  lost  their  all  —  who  retired  to  rest  on  the  fatal  night  of  the 
sixteenth  of  December,  in  the  comfortable  hope  that  the  means 
were  secured,  in  trusty  hands,  from  whence  their  future  support 
was  to  be  derived,  and  awoke  to  the  painful  reality  that  all  was 
lost,  and  themselves  dependent  upon  the  reluctant  charity  of  others. 

In  the  measures  recommended  for  the  resuscitation  of  the  com- 
panies, relief  may  be  afforded  to  a  limited  extent  to  this  interesting 
class  of  sufferers,  by  giving  them  the  preference  over  all  others  in 
subscribing  to  the  new  stock,  and  perhaps  realizing  thereby  a  small 
advance  on  the  sale  of  it  to  others  better  able  than  themselves  to 
retain  it. 

It  is  confidently  hoped  that  the  Legislature  will  repeal  all  the 
laws  of  the  State,  which  by  construction  may  render  stockholders 
liable  beyond  the  amount  of  their  stock,  or  directors  for  losses, 
except  such  as  may  be  occasioned  by  their  individual  misconduct 
While  any  doubt  remains  on  this  subject,  it  cannot  be  expected 
that  the  stock  of  such  companies  will  be  taken,  or  their  affairs 
conducted  by  persons  of  character  and  responsibility;  and  the  own- 
ers of  property  in  New-York  will  be  compelled  to  look  for  indem- 
nity from  loss  by  fire,  to  other  cities,  where  such  liabilities  do  not 
exist. 


8 


[Senate 


5.  The  diminished  amount  of  capital  employed  in  fire  insurance 
being  now  inadequate  to  the  protection  of  the  property  in  New- 
York,  and  our  recent  experience  of  the  insecurity  of  investments 
in  insurance  stocks  rendering  it  doubtful  if  new  companies  can  be 
filled  at  present,  the  committee  take  the  liberty  of  recommending 
a  repeal  of  the  law  prohibiting  insurance  companies  in  other  States 
from  insuring  property  in  the  State  of  New-York,  or  subjecting 
such  companies  to  taxation. 

0.  The  committee  are  deeply  impressed  with  the  good  policy  of 
encouraging  the  introduction  of  capital  into  the  State  at  all  times, 
and  particularly  desirous  to  urge  it  as  a  measure  of  relief  at  the 
present.  A  loss  of  such  magnitude  as  that  which  we  now  deplore, 
cannot.be  overcome  without  increasing  the  number  of  borrowers; 
and  it  is  therefore  important  to  encourage  competition,  by  increas- 
ing the  number  of  lenders.  They  would,  therefore,  recommend  a 
repeal  of  the  law  subjecting  the  property  of  non-resident  mortga- 
gees to  taxation. 

7.  Towards  the  end  above  alluded  to,  the  Secretary  of  the  Trea- 
sury has,  with  a  promptitude  that  entitles  him  to  our  grateful  ac- 
knowledgements, directed  the  transmission  of  as  much  of  the  avail- 
able funds  of  the  Government  as  could  consistently,  with  other 
claims,  be  appropriated  to  the  relief  of  our  community;  but  this 
most  desirable  aid  will  prove  wholly  inoperative,  unless  the  exist- 
ing restrictions  on  bank  discounts  are  modified  to  meet  the  emer- 
gency. Immediate  action  on  this  head  is  the  more  requisite,  as  the 
season  of  extensive  transactions  is  at  hand,  when  our  great  inte- 
rior is  accustomed  to  look  to  the  city  of  New-York,  not  only  as 
the  source  of  their  stated  supplies,  but  as  a  mart  for  the  products 
of  their  own  industry.  To  accomplish  this  object,  we  would  re- 
spectfully suggest  the  adoption  of  a  law  authorizing  the  banks  to 
regard  the  public  deposites,  or  other  loans  of  a  permanent  charac- 
ter, as  additional  capital,  and  to  increase  their  discounts  in  the 
ratio  of  such  addition. 

Several  plans  embracing  detailed  views  of  the  best  course  to  be 
pursued  in  the  application  of  funds  required  to  be  raised,  have  been 
placed  in  our  hands  by  individuals  of  distinguished  character  for 
financial  skill  and  experience:  we  beg  leave  to  submit  them  to  the 
consideration  of  your  Excellency,  to  be  disposed  of  in  such  man- 
ner as  you  may  deem  proper. 

\Ve  have  the  honor  to  be, 

With  sentiments  of  great  respect, 
Your  Excellency's  most  ob't  serv'ts. 

PHILIP  HONE, 
DANIEL  JACKSON, 
JAS.  B.  MURRAY, 
CH.  AUGS.  DAYIS. 

Committee. 


No.  2.J 


9 


PROJET  A. 

The  United  States  have  now  in  the  treasury  nearly  twenty  mil- 
lions of  dollars.  It  is  the  right  and  duty  of  Congress  to  place  the 
public  money  in  safe  hands.  If  that  can  be  done,  and  a  low  rate 
of  interest  obtained  for  it,  instead  of  leaving  it  in  places  less  safe, 
and  without  interest,  the  general  weal  would  be  promoted  by  such 
a  disposition  of  at  least  part  of  the  money.  This  exactly  corres- 
ponds with  the  suggestion  in  the  report  of  the  Secretary  of  the 
Treasury  just  issued,  that  the  surplus  revenue  be  invested  1o  meet 
the  anticipated  deficit,  after  the  year  1842,  in  such  manner  as  to 
disconnect  the  fiscal  agents  of  the  Government  from  "  the  danger- 
ous relation  of  borrowers  from  the  treasury  for  reloaning,  and  for 
private  gain." 

Now,  let  the  State  of  New-York  offer  to  take  six  millions  of 
this  money  at  an  interest  of  three  per  cent  per  annum,  for  five  or 
ten  years,  and  pledge  its  faith  to  restore  it  at  the  time  agreed  on. 
If  the  United  States  should  accept  this  proposition,  which  it  is  be- 
lieved they  will,  inasmuch  as  it  would  establish  no  perplexing  pre- 
cedent, nor  be  subject  to  any  constitutional  objection,  then  it  will 
be  in  the  power  of  the  State  of  New-York  to  select  trustees,  un- 
der the  guaranty  of  the  city;  or  otherwise,  to  exchange  or  substi- 
tute this  money  for  the  bonds  and  mortgages  belonging  to  the  in- 
solvent insurance  companies,  and  thus  enable  them  at  once  to  di- 
vide their  assets  among  their  creditors,  preserve  mercantile  credit 
unimpaired,  greatly  facilitate  the  collection  of  the  public  revenue, 
and  what  is,  perhaps,  more  important,  it  would  create  a  fund  equal 
to  the  difference  between  the  rate  of  interest  to  be  paid  to  the 
United  States,  and  that  to  be  received  on  these  bonds  and  mortga- 
ges, which  might  justly  be  applied  to  the  relief  of  the  widows,  or- 
phans, and  other  helpless  and  dependent  persons  whose  means  of 
subsistence,  having  been  invested  in  the  stock  of  these  insolvent 
insurance  companies,  have  been  prostrated  or  annihilated. 


PROJET  B. 

In  regard  to  the  most  advantageous  application  of  the  proceeds 
of  a  stock  to  be  created  under  the  pledge  of  the  faith  of  the  State 
or  City  of  New-York,  or  both,  it  is  proposed  that  an  investment 
of  it  in  the  purchase  of  the  seven  millions  of  stock  owned  by  the 
Government  in  the  Bank  of  the  United  States,  would  be  a  most 
beneficial  operation, 

That  stock  is  something  rather  extraneous  to  the  ordinary  finan- 
ces of  the  treasury.  It  was  originally  part  of  the  public  debt,  and 
as  such  has  been  regularly  reimbursed;  and  when  paid  back  under 
the  general  and  final  distribution  of  the  bank,  will  be,  to  that  ex- 
tent, a  clear  surplus,  independently  of  the  revenue. 

[Senate  No.  2.]  B 


1(1 


[Senate 


Considering  the  difficulties  between  the  Government  and  the 
Bank,  and  looking  to  the  length  of  time  before  the  stock  may  be 
ultimately  paid,  and  to  the  uncertainty  of  receiving  much  interest 
for  the  ensuing  two  years,  it  ought  to  be  the  desire,  as  it  appears 
to  be  the  policy  of  the  treasury  to  dispose  of  it  promptly,  and  in 
the  whole  upon  reasonable  terms. 

Notwithstanding  that  the  stock  of  the  bank  is  quoted  nominally 
at  above  par,  yet  if  so  large  a  portion  as  the  Government  share 
should  be  brought  into  the  market  at  any  time  hereafter,  it  could 
not  be  expected  to  bring  par. 

In  this  view  of  the  case,  it  is  proposed  to  purchase  of  the  Ge- 
neral Government  this  stock  at  par,  on  a  credit  of  ten,  fifteen  or 
twenty  years,  at  as  low  a  rate  of  interest  as  possible.  That  the 
Bank  of  ihe  United  States  should  immediately  cash  it  in  whole  or 
in  part,  and  that  the  amount  so  cashed  should  be  disposed  of  in  the 
purchase  of  the  bonds  and  mortgages  held  by  the  insurance  com- 
panies. 

If  it  is  deemed  important  to  prevent  the  relation  of  a  borrower 
and  lender  between  the  State  and  General  Government,  the  State 
stock  could  be  sold  in  the  market  at  a  handsome  premium,  which 
added  to  the  gain  on  a  judicious  disposal  of  the  Bank  stock  would 
create  a  large  fund  to  be  distributed  among  the  most  necessitous 
sufferers  by  the  failure  of  the  insurance  companies,  or  in  such  other 
manner  as  the  State  or  City  might  decide. 


PRO.TET  C. 

The  State  to  create  a  scrip,  redeemable  in  20  years,  for  a  sum 
which,  including  the  amount  proposed  to  be  created  by  the  city  of 
New-York,  shall  be  ten  millions  of  dollars;  or  if  New-York  should 
reconsider,  and  suspend  further  acting  on  the  proposed  loan  of  six 
millions,  then  the  State  to  create  as  above  the  sum  of  ten  millions, 
for.  account  of  the  city  of  New- York. 

A  mixed  commission  to  be  appointed  to  take  charge  of  said  scrip, 
for  purposes  of  sale,  distribution  and  application.  This  commission 
to  consist  of  nine  members,  viz.  the  Bank  Commissioners,  (three;) 
three  to  be  appointed  by  the  corporation  of  New-York,  (to  be  no- 
minated by  the  mayor;)  and  three  by  the  banks  of  New-York 
*  subject  to  the  Safety  fund  law.  The  duty  of  these  commissioners 
shall  be, 

1.  To  distribute  this  scrip  among  the  banks  of  the  city  of  New- 
York  subject  to  the  Safety  fund  law,  and  pro  rata  to  the  capital  of 
each  bank  respectively,  and  at  such  rates  of  premium  as  shall  be 
agreed  upon. 

2.  Said  banks  must  agree  to  furnish  said  commissioners  a  sum 
sufficient  to  purchase  from  the  insurance  companies  who  may  have 
suffered  by  the  conflagration  of  16th  and  17th  December,  such 
bonds  and  mortgages  held  by  said  companies  as  may  in  the  opinion 
of  said  commissioners  be  deemed  good  security,  giving  30  days' 


No.  2.] 


11 


notice  ufter  entering  on  their  duties,  for  the  discharge  of  this  por- 
tion of  said  duty. 

3.  When  this  duty  shall  have  been  completed,  the  said  commis- 
sioners shall  report  to  the  Comptroller  the  amount  applied  by  them 
to  the  purchase  of  bonds  and  mortgages  as  aforesaid,  and  the 
amount  of  scrip  held  by  each  bank;  which  amount  of  scrip  thus 
held  by  the  banks  respectively,  and  not  appropriated  to  the  pur- 
chase of  bonds  and  mortgages  as  aforesaid,  shall  constitute  and  be 
used  by  said  banks  as  so  much  additional  capital,  and  on  which 
their  discount  line  may  be  extended  as  now  by  law  permitted. 

4.  The  premium  which  may  be  paid  by  the  banks  on  the  scrip, 
shall  be  paid  over  to  the  different  insurance  companies,  pro  rata 
with  the  amount  of  their  capital  lost  by  the  fire,  to  be  by  them 
distributed  to  such  of  their  stockholders  who  may  in  their  opinion 
require  aid,  giving  a  preference  to  females,  orphans,  and  infirm 
persons. 

5.  The  security  to  be  furnished  by  the  banks  for  the  faithful 
payment  of  interest  and  final  redemption  of  the  scrip  or  bonds  cre- 
ated by  this  law,  shall  be  fixed  on  by  the  commissioners. 

Which  several  duties  being  discharged,  the  commission  ceases, 
and  the  Bank  Commissioners  assume  the  supervision  in  the  usual 
course  of  their  duties. 

As  the  premium  which  the  banks  may  be  disposed  to  pay  will 
mainly  depend  on  the  rate  of  interest  the  bonds  may  bear,  and  the 
facility  of  negotiating  them,  it  would  be  agreeable  lo  all  parties, 
as  it  could  be  injurious  to  none,  to  allow  each  bank  the  privilege 
of  indicating  on  the  bonds  the  place  of  payment  of  interest  and 
principal,  and  also  to  name  a  shorter  term  of  payment  than  the 
law  may  allow,  as  said  banks  may  prefer  liquidating  at  a  less  re- 
mote period  than  20  years.  On  the  surrender  of  the  bonds  to  the 
city  or  State,  the  liability  of  the  banks  originally  receiving  the 
same,  ceases. 


Ex  IGtbria 


SEYMOUR  DURST 


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Because  it  has  been  said 
"Ever'tbing  comes  t'  him  who  waits 

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O  n/  t_  N  t  T  |  BOX  5~3 


Avery  Architectural  and  Fine  Arts  Library 
Gift  of  Seymour  B.  Durst  Old  York  Library 


